May 23, 2022

Volume XII, Number 143

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May 23, 2022

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COBRA Meets ACA – Time to Update COBRA Notices - Consolidated Omnibus Budget Reconciliation Act, Affordable Care Act

The Affordable Care Act created a new option to obtain health insurance for employees who are losing job-based coverage—the Health Insurance Marketplace (commonly referred to as the “Exchange”).  Because this new coverage option might be relevant to an employee who is deciding whether to take COBRA coverage, the Department of Labor (DOL) recently issued new model COBRA notices that include information about the Exchange.  These model notices cover both the initial COBRA notice that is due upon commencement of employer coverage and the COBRA election notice that is due when certain qualifying events occur.  The models are available on the DOL website.

Although employers are not required to use the new model notices, the models will be considered good faith compliance with COBRA notice content requirements.  As such, employers should either (1) begin using the new model notices, or (2) update current COBRA notices, as appropriate, to reflect the new content and language sanctioned by the DOL.

© 2022 Poyner Spruill LLP. All rights reserved.National Law Review, Volume IV, Number 153
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About this Author

Kelsey H. Mayo, Employee Benefits Attorney, Poyner Spruill Law Firm
Partner

Kelsey Mayo has extensive experience working with governmental, non-profit, and for-profit employers on all aspects of qualified and non-qualified plans, welfare benefit plans, fringe benefit plans, and executive compensation plans.

Kelsey routinely represents clients before the Internal Revenue Service and Department of Labor in matters involving employee benefits.

704-342-5307
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